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China Morning Snapshot – 02 February 2021China Morning Snapshot – 02 February 2021 |
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Dalian Commodity Exchange extended the weakening trend throughout the morning session amid thin trading ahead of the holidays despite the surge in the international equity market and crude oil complex.
Details on the spot and futures prices are shown in the following table:
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02 February 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
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Combined and reported by CommoPlast |
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Dalian Commodity Exchange (Mid-day closing) |
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PP 2105 |
CNY 8152 |
USD 1117 |
-CNY 77 |
-USD 12 |
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LLDPE 2105 |
CNY 7840 |
USD 1074 |
-CNY 100 |
-USD 15 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8300-8500 |
USD 1137-1164 |
Stable |
Stable |
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LLDPE (North China) |
CNY 7800-8100 |
USD 1069-1110 |
-CNY 50-100 |
-USD 8-15 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC’s warehouses digested as much as 65,000 tons in the previous trading day to 550,000 tons on 2 February 2021. (Correction: Total stocks were at 615,000 tons on 1 February 2021. The previous Snapshot reported at 605,000 tons.)
The significant reduction in the stocks is a result of backlog clearance for deals concluded during late January 2021 but unable to book transportations.
Meanwhile, players reported that sentiment in the local ground continues to deteriorate. Several traders informed of receiving not a single inquiry through the morning session regardless of the lower prices. “Good news is that we have depleted most of the on-hand inventory and facing no sales pressure at the moment. Throughout January, we have also managed to re-export a number of HDPE cargoes to the South American market,” a trader added.
Country
China
